Skip to main content
March 1, 2020
Question

Do we pay Self-Employment for this Intership

  • March 1, 2020
  • 1 reply
  • 0 views

We received a 1099-MISC (with Box 3 'other income' more than $400) for an internship at a federal agency.

The internship is paid through the Universities Space Research Association.

 

Does this count as self-employment? It seems odd to me that an internship at a government facility requires the intern to pay for self-employment taxes, but I don't see any other options in TurboTax.

1 reply

Employee
March 1, 2020

If the main purpose is educational, it is not self employment.  Box 3 indicates that it is not self-employment, to get turbotax to fill out a schedule C you must be answering the test questions wrong.  You should be answering the test questions as "no" -- not intended to make a profit, not similar to my usual work, not going to do in the future.  Also, I believe that after entering the 1099-MISC, there is a page of special circumstances and one of those boxes you can check should say something about an educational stipend or scholarship. 

April 10, 2023

My daughter received a 1099-MISC  with box 3 with amount.  How should she reference this when doing her taxes?

 

Employee
April 10, 2023

@ace01 wrote:

My daughter received a 1099-MISC  with box 3 with amount.  How should she reference this when doing her taxes?

 


You are responding to an old discussion but have not provided any other information about your daughter's situation.  Was this an internship?  Through the school or from an outside company?  For academic credit?